What is lifetime value?

Question

Accepted Answer

Lifetime value is what a customer is worth over the whole time they keep buying from you, not on their first visit. It is the number that makes acquisition spending rational. Most venues underestimate it badly, because they count the first bill. A regular who comes fortnightly for two years, and brings people, is worth orders of magnitude more than the meal that started it.

Whatis lifetime value?

Three that come up next.

Customer acquisition cost

ROI

Brand affinity